Motors, Generators and Other Electrical Equipment Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld

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Times are tough for the Australian Motors, Generators and Other Electrical Equipment Manufacturing industry. While concerns regarding energy efficiency, higher energy prices and ageing equipment have supported increased demand for industry products, revenue has decreased in the five years through 2011-12. This is because imports are satisfying an increasing percentage of domestic demand. For these reasons, industry research firm IBISWorld has updated its report on the Motors, Generators and Other Electrical Equipment Manufacturing industry.

IBISWorld Market Research

IBISWorld Market Research

Despite higher domestic demand, Motors, Generators and Other Electrical Equipment Manufacturing industry revenue declined overall due to import competition

Times are tough for the Australian Motors, Generators and Other Electrical Equipment Manufacturing industry. Rarely have energy-related issues been so high on the agenda. Increasing evidence points to the consumption of fossil fuels as the main cause of changes in the world's climate, resulting in initiatives to adjust the way energy is produced and distributed. According to IBISWorld industry analyst Nigel Fitzpatrick, “these factors, higher energy and electricity prices and ageing electrical infrastructure will drive demand for solutions that provide secure and energy-efficient electrical equipment.” The Australian market for motors, generators and other electrical equipment is thus expected to have grown in the past five years. Yet imports are satisfying an increasing percentage of domestic demand. Australian manufacturers of industry products will generate revenue of $4.3 billion in 2011-12. Industry revenue is expected to decrease by an annualised 1.3% in the five years through 2011-12. This was largely caused by a fall in exports, which was partly offset by an increase in domestic sales. Revenue is expected to decrease by a lower 0.7% in 2011-12.

The Australian Motors, Generators and Other Electrical Equipment Manufacturing industry has a low level of concentration. The top four firms are Schneider Electric Australia Holdings Pty Ltd, Wilson Transformer Company, ABB Australia Pty Limited and Siemens Ltd. Low concentration in this industry is due to the high number and diversity of items produced. Concentration is much higher within specific product segments. Fitzpatrick adds, “Industry concentration has increased due to acquisition activity, principally foreign firms acquiring Australian firms.”

Sales of motors, generators and other electrical equipment during the five years through 2016-17 will be promoted by demand for enhanced energy and environmental performance, and increased electrical current quality. Revenue is expected to increase over the five years through 2016-17. Domestic demand for industry products is also forecast to grow and government incentives will promote spending on equipment that improves energy efficiency. However, growth in industry activity will be softened by a loss of domestic market share to imports and by very low growth in industry exports.

For more information, visit IBISWorld’s Motors, Generators and Other Electrical Equipment Manufacturing industry report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry consists of establishments that manufacture electric motors, generators, electricity transmission or distribution equipment, switchgear, transformers or other electrical machinery, equipment, supplies or components. The industry also manufactures powder, paste or crystal soldering or welding flux.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
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